The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Sun Hydraulics met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins contracted, net margins dropped.
Sun Hydraulics recorded revenue of $48.8 million. The three analysts polled by S&P Capital IQ expected a top line of $48.7 million on the same basis. GAAP reported sales were 7.9% lower than the prior-year quarter's $53.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.34. The three earnings estimates compiled by S&P Capital IQ averaged $0.36 per share. GAAP EPS of $0.34 for Q3 were 23% lower than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.7%, 60 basis points better than the prior-year quarter. Operating margin was 27.0%, 220 basis points worse than the prior-year quarter. Net margin was 18.1%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $45.4 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $206.4 million. The average EPS estimate is $1.53.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,310 members out of 1,327 rating the stock outperform, and 17 members rating it underperform. Among 372 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 370 give Sun Hydraulics a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sun Hydraulics is hold, with an average price target of $28.50.
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